The Feature

How to Add a New Operating Unit to Existing Configurations

September 5, 2007 on 1:06 pm | by Marian Crkon | In How To Guides | |  Print |  Email

The following steps are required to add new operating units to your existing organizational structure:

1. Revise the Organization Structure.

2. Define Sets of Books (optional).

3. Define Locations.

4. Define Organizations.

5. Define Relationships.

6. Define Responsibilities.

7. Set Profile Options for Each Responsibility linked to the new Operating Unit.

8. Run the Replicate Seed Data concurrent program.

9. Set profile options specific to operating units.

10. Define Inventory Organization Security (optional).

11. Implement the Application Products.

12. Secure Balancing Segment Values (optional).

13. Run the Setup Validation Report (recommended).

14. Implement Document Sequencing (optional).

15. Define Intercompany Relations (optional).

16. Set the top reporting level (optional).

17. Set up conflict domains (optional).

The trick with adding a new operating unit to the existing configurations was to figure out which configurations were operating unit specific. The attached three documents capture those steps for a typical installation of Oracle Projects and Financials.

• BR100 Application Configurations - Multi-Org
• BR100 Application Configurations - Financials
• BR100 Application Configurations - Projects

Another dilema we had was how many operating units to define in the same set of books. We started with the “best practice” approach to have one set of books for all operating units with the same 3 Cs (Chart of Accounts, Calendar and Currency). The challenge with this approach was how to manage some financial operations, including closing the periods, securing journals by operating unit, or defining default accounting rules. And because we needed to completely separate three legal entities, we ended up with multiple sets of books - one for operating unit. There are several improvements to the multi-organization structures in the release 12 but I will right about those after I can “put my hands on them”.

9 Comments »

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1. Nice summary, was thinking yesterday about looking for this info!
   Gareth

   Comment by Gareth Roberts — September 5, 2007 #

2. Hi Marian
   Your blog rocks !!!! I have been reading your blog for the last 2 months and have benefited alot in my understanding of iExpenses and Projects modules.

   The articles in your blog are very informative to say the least. You are helping others in the journey across the learning curve in Oracle 11i.

   Need an info on iExpenses, Can we support the following scenario in Web Based Expense Reports.

   SOB Currency : USD
   Reimbursement in EUR
   Expense lines in EUR
   AP Invoice Line : USD - Functional using Corporate Rate.

   Exchange Rate : GL Daily Rates - Corporate Rate

   We would like to submit an expense report online with foreign currency expense lines. While entering the expenses report, user shouldnt key in the rates.
   Then while importing the Expense Report in Payables, the foreign currency expense lines are converted to functional currency using GL Daily Rates - Corporate Rate.

   Is there a setup for the Exchange Rate to use during Import ?

   Comment by Ananda Gupta — September 11, 2007 #

3. Yes, iExpenses supports foreign currency expense reports and keeps track of different foreign and functional currencies. Thank you for your kind comments.

   Comment by Marian — September 11, 2007 #

4. Thanks Marian for the info.

   Is there a setup in Payables/iExpenses so that we can use GL Daily Rates for conversion of Expense lines to the Set-of-Books Functional Currency during import to AP ?
   Requirement is to use GL Daily Rates ( Corporate Rate Type) for conversion. User will not be entering the conversion rates in their Expense Reports.
   -Ananda

   Comment by Ananda Gupta — September 11, 2007 #

5. Remember expense reports are, essentially, a self-service extension of Payables. In order to enable multiple currency invoices, you first need to enable multiple currencies in AP. As Payables Manager, navigate to Options > Payables > Currency.

   Then, in order to control how exchange rates are entered during the expense report entry, define your exchange rate policy in Internet Expenses Setup and Administration > Policy > Exchange Rates.

   Comment by Marian — September 11, 2007 #

6. HI Marian
   Thanks a ton for your help. I got your point regarding multi-currency support. Taking your cues, went through the steps in Payables and Setup Admin and was able to test the feature in OIE.

   Approval Routing query:
   Another point I was thinking of yesterday is the issue of Executive Approval of Expense Reports. Employees with designations such as VP, CEO , CFO and others would like an auto-approve route for their expenses reports. iExpenses always routes expense reports to supervisors, so a dummy employee with a high signing limit can act as Approver.Seems like a crude way of doing things, is there a better option with AME to auto-approve without an approver routing. Next option is customizing Expense WF as a last resort.
   Have you faced a similar issue or can suggest a workaround.

   -Regards,
   Ananda

   Comment by Ananda Gupta — September 12, 2007 #

7. HI Marian

   Could you please suggest how to add new subsidiary or Legal Entity to existing configuration in Oracle Apps Release-12

   Regards
   Raj

   Comment by Raj — October 18, 2007 #

8. I am not very familiar with R12 yet but I can imagine it is very similar to R11 when it comes to defining multi-org structures. Refer to Metalink and Oracle Documentation (links are on the sidebar); there are several excellent user guides and white paper that cover this topic.

   Comment by Marian — October 18, 2007 #

9. It is not essential to have 1 sob per Legal Entity, outside of the US that is best practice but for the US you should put many LE in one sob and use the balancing segmetn to represnt the LE.

   CHeck my blog post for more details on defining Legal Entity with details of R12 also

   Comment by David Haimes — December 24, 2007 #

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